How recent Regulation DD changes affect your accounts…
Regulatory Information
The Federal Reserve Board recently made some regulatory changes which may affect how you view your account. OldTown Bank has taken the necessary steps in order to comply with these changes.
Below is an explanation and example of the changes:
Q: What is Regulation DD?
A: Regulation DD is a consumer deposit regulation that is also called Truth in Savings. The regulation requires depository institutions to disclose the terms of deposit accounts to consumers so they can make informed decisions and meaningful comparisons between financial institutions.
Q: What are the changes to Regulation DD that will affect you?
A: An account balance disclosed to a customer through any automated system*:
ATM
Online Banking
Will exclude additional amounts that the institution may provide or that may be transferred from another account of the customer in case of a potential non-sufficient funds or overdraft condition. (*including, but not limited to)
Q: Who is affected by the changes to Regulation DD?
A: The changes will affect customers who can access additional funds through the Overdraft Privilege or Line of Credit.
Q: How do these changes affect you?
A: Prior to this change, the "Available Balance" on:
ATM receipts
Online Banking Account Access Screen
Included the amount available to a customer through one of these programs, Overdraft Privilege or Line of Credit. With this change, the additional amounts mentioned above will no longer be included in the available balance returned to a customer.
Example:
If a customer has a current balance of $10 and a $500 Overdraft Privilege or Line of Credit, their available balance will be disclosed as $10 through an automated system, but the customer will have access to the full $510 (i.e. $10 current balance that is required to be disclosed and the $500 of overdraft protection that cannot be disclosed).
Q: How can I determine the amount available to me that includes my OD?
A: Regulation DD amendments only apply to balances given by electronic devices. Face-to-face conversations and live telephone conversations are not affected. Therefore, you may inquire in person or by calling 828-456-3006 and speak to customer service.
Q: If additional funds available in an Overdraft Privilege or Line of Credit are not included in the balance returned to customers at the ATM or by Online Banking will those funds be available to fund ATM withdrawals or POS purchases?
A: Yes, any funds available through these programs will still be available for ATM withdrawals or to cover POS purchases.